Week in Review: Did Markets Hint at a Selloff?
Earnings reports this past week highlighted that in a market near all-time highs, analysts and traders can be unforgiving.
Reflecting on a sell-off in Broadcom (AVGO) after earnings were solid but disappointed, Dave Nicholson, Chief Technology Advisor at The Futurum Group, told Marley Kayden, “The reality of the AI space, from a semiconductor perspective [is] massive growth ahead. However …. anything less than ‘better than perfection’ is going to be punished by the market.”
The S&P 500 was down -2.6% for the week and snapped a nine-week winning streak, and the Dow Jones Industrial Average declined -0.3% on the week after hitting an intraday all-time high early Friday. While tech stock obsession continued, the tech-heavy Nasdaq-100 (NDX) fell more than 4% and the Philadelphia Semiconductor Index (SOX) slipped 4.7%. Small-cap stocks lost a little steam, with the Russell 2000 Index down -2.9%, though volatility was up with the CBOE Volatility Index (VIX) up more than 40% on the week to 21.51. With warring words in the Middle East, the U.S. crude oil benchmark price was up nearly 3% on the week to $90.26 per barrel.
What could disrupt or reshape markets? Watch our interviews and read our articles.
Tech Opportunity and Macroeconomic Crosscurrents
Guests talked about volatility, currency, widening one’s aperture and thinking about macroeconomic realities.
- Despite a Tech Pullback, Where Does Potential Loom as AI Boosts Economy? Nathan Peterson, Director of Derivatives Analysis at Charles Schwab in conversation with Sam Vadas.
- 'Fireworks Fading' in AI Trade? What Bulls Need to Continue Momentum: Gina Martin Adams, Chief Market Strategist at HB Wealth, in conversation with Diane King Hall.
Earnings: When Good May Not Be Good Enough
From Broadcom (AVGO) and CrowdStrike (CRWD) to Lululemon (LULU), quarterly earnings reports from some big names were a drag on the market this past week.
- Balancing Earnings Surprise "Shock" with Risk Tolerance in "Casino-Like" Moves: Liz Ann Sonders, Chief Investment Strategist at the Schwab Center for Financial Research, in conversation with Sam Vadas.
- What AVGO Earnings Say on State of AI Chip Trade, Nvidia (NVDA) Competition: Dave Nicholson at Futurum, and Angelo Zino, Senior Equity Analyst at CFRA Research, in conversation with Marley Kayden.
- AVGO & CRWD: Two Sides in Same AI Trade Where Perfection's Priced In: C. James Czerniawski, Head of Emerging Technology Policy at The Consumer Choice Center, in conversation with Sam Vadas.
- Lululemon (LULU) Earnings: Can Apparel Retailer Regain its Balance? by Rick Ducat.
Where the Market Goes from Here: Time for Energy, Industrials?
Investors are thinking about diversification as they watch parabolic moves in some investments. Guests talked about market behavior and structure, the macroeconomic picture and how energy fits in, and what to do next.
- SPX Rally to Continue? Ed Yardeni Makes Case for Fed Rate Hike, Energy: Ed Yardeni, President of Yardeni Research, in conversation with Sam Vadas.
- Energy Markets Bounce Back After Iran Conflict Escalates by Kevin Green.
- AI Trade Broadens: Beyond Mega Caps into Industrials, Materials: Kristy Akullian, Head of iShares Investment Strategy for the Americas at BlackRock, in conversation with Sam Vadas and Marley Kayden.
- ETF Watchlist: From Chips to Apps? Rethinking the AI Trade Beyond NVDA, MU: Kai Wu, Founder and Chief Investment Officer at Sparkline Capital, in conversation with Diane King Hall.
Read more in Schwab Network Closing Bell articles for last week with details on earnings and market moves.
